[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Rules and Regulations]
[Pages 65551-65552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22732]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Parts 36 and 42
RIN 2900-AP78
Federal Civil Penalties Adjustment Act Amendments
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Federal Civil Monetary Penalties Act of 1990, as amended
by the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015, sets forth a formula increasing the maximum statutory
amounts for civil monetary penalties and requires federal agencies to
give notice of the new maximum amounts by regulation. This final rule
of the Department of Veterans Affairs (VA) adopts without change VA's
interim final rule, which increased maximum civil monetary penalties
from $10,000 to $21,563 for false loan guaranty certifications and from
$5,500 to $10,781 for fraudulent claims or fraudulent statements in any
VA program.
DATES: Effective Date: Effective September 23, 2016, the interim final
rule published June 22, 2016 (81 FR 40523) is adopted as final.
FOR FURTHER INFORMATION CONTACT: Jeffrey Martin, Program Manager,
Office of Regulation and Policy Management, Department of Veterans
Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 461-4918.
SUPPLEMENTARY INFORMATION: On June 22, 2016, VA published in the
Federal Register an interim final rule adjusting the amounts of civil
monetary penalties that VA may assess against participants who make
certain false certifications or who engage in fraudulent activity. See
81 FR 40523. The interim final rule increased maximum civil monetary
penalties from $10,000 to $21,563 for false loan guaranty
certifications and from $5,500 to $10,781 for fraudulent claims or
fraudulent statements in any VA program.
VA published the interim final rule to implement the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015
Act) (Sec. 701 of Pub. L. 114-74), which amended the Federal Civil
Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment
Act) (Pub. L. 101-410), to improve the effectiveness of civil monetary
penalties and to maintain their deterrent effect. In calculating the
adjusted amounts, VA relied on guidance from The Executive Office of
the President Office of Management and Budget (OMB), published on
February 24, 2016, advising the heads of federal agencies how to
implement the 2015 Act. See https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
VA received one comment in response to the interim final rule. The
comment was a photograph that was not relevant to the rulemaking. The
photograph was not posted to www.regulations.gov. VA is adopting the
interim final rule without change.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, when
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 12866 (Regulatory Planning and Review) defines a
``significant regulatory action,'' which requires review by OMB, as
``any regulatory action that is likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities; (2) Create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency; (3) Materially alter
the budgetary impact of entitlements, grants, user fees, or loan
programs or the rights and obligations of recipients thereof; or (4)
Raise novel legal or policy issues arising out of legal mandates, the
President's priorities, or the principles set forth in this Executive
Order.''
The economic, interagency, budgetary, legal, and policy
implications of this regulatory action have been examined, and it has
been determined that it is not a significant regulatory action under
Executive Order 12866.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. This interim final rule will have no such
effect on State, local, and tribal governments, or on the private
sector.
Paperwork Reduction Act
This interim final rule contains no provisions constituting a
collection of information under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3521).
Regulatory Flexibility Act
The Secretary hereby certifies that this final rule will not have a
significant economic impact on a substantial number of small entities
as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-
612. Accordingly, no proposed rulemaking was required in connection
with the adoption of this final rule. Pursuant to 5 U.S.C. 605(b), this
final rule is exempt from the initial and final regulatory flexibility
analyses requirements of sections 603 and 604.
[[Page 65552]]
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number and title for the
program affected by this document is 64.114, Veterans Housing--
Guaranteed and Insured Loans.
Signing Authority
The Secretary of Veterans Affairs, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. Gina S.
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs,
approved this document on September 16, 2016, for publication.
List of Subjects in 38 CFR Parts 36 and 42
Condominiums, Housing, Individuals with disabilities, Loan
programs-housing and community development, Loan programs-veterans,
Manufactured homes, Mortgage insurance, Reporting and recordkeeping
requirements, Veterans.
PART 36--LOAN GUARANTY
PART 42--STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES
ACT
0
Accordingly, the interim rule amending 38 CFR parts 36 and 42 which was
published at 81 FR 40523 on June 22, 2016, is adopted as a final rule
without change.
Dated: September 16, 2016.
Michael Shores
Acting Director, Regulation Policy & Management Office of the Secretary
Department of Veterans Affairs
[FR Doc. 2016-22732 Filed 9-22-16; 8:45 am]
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